Aveanna Healthcare Holdings Inc. (AVAH) Bundle
A Brief History of Aveanna Healthcare
Aveanna Healthcare, a leading provider of pediatric and adult home healthcare services, has made significant strides since its inception. The company was founded in 2017 through the merger of several healthcare organizations, including the former Pediatric Home Service and the adult home healthcare provider, Aveanna Healthcare. This strategic consolidation aimed to enhance service delivery and expand its operational footprint across the United States.
Financial Performance Overview (2024)
As of September 28, 2024, Aveanna Healthcare reported revenue of $509.0 million for the third quarter, representing a 6.5% increase from $478.0 million during the same period in 2023. The nine-month revenue totaled $1.504 billion, up from $1.416 billion in the prior year, reflecting a 6.2% increase.
| Financial Metric | Q3 2024 | Q3 2023 | 9-Months 2024 | 9-Months 2023 |
|---|---|---|---|---|
| Revenue | $509.0 million | $478.0 million | $1.504 billion | $1.416 billion |
| Net Loss | $(42.8 million) | $(102.4 million) | $(40.1 million) | $(108.8 million) |
| Operating Income | $34.0 million | $(76.4 million) | $94.0 million | $(21.2 million) |
| Gross Margin Percentage | 31.4% | 30.8% | 30.8% | 31.6% |
Segment Performance
The company operates through three main segments: Pediatric Services (PDS), Home Health Services (HHH), and Medical Services (MS). For the three-month period ending September 28, 2024, PDS revenue was $409.6 million, a 6.4% increase compared to the previous year. HHH revenue increased by 2.2% to $54.1 million, while MS segment revenue rose 12.6% to $45.3 million.
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Change (%) |
|---|---|---|---|
| Pediatric Services | $409.6 million | $384.8 million | 6.4% |
| Home Health Services | $54.1 million | $52.9 million | 2.2% |
| Medical Services | $45.3 million | $40.3 million | 12.6% |
Cost Structure and Profitability
The cost of revenue for the third quarter of 2024 was $349.3 million, which reflects a 5.6% increase from $330.7 million in Q3 2023. The gross margin improved to $159.7 million, representing 31.4% of revenue, compared to 30.8% in the prior year.
Recent Developments
In 2024, Aveanna Healthcare continued to focus on expanding its service offerings and enhancing operational efficiencies. The company successfully reduced its net loss to $(42.8 million) in Q3 2024 from $(102.4 million) in the same quarter of 2023, driven by increased revenues and improved operational performance.
Stock Performance and Market Capitalization
As of late 2024, Aveanna's stock has demonstrated resilience in the market, with a notable increase in investor confidence reflected in its market capitalization, which stands at approximately $300 million.
Overall, Aveanna Healthcare has positioned itself as a strong player in the home healthcare market, leveraging its extensive service network and commitment to quality care to drive growth and financial stability.
A Who Owns Aveanna Healthcare Holdings Inc. (AVAH)
Ownership Structure
Aveanna Healthcare Holdings Inc. (AVAH) has a diverse ownership structure, comprising institutional investors, retail investors, and management stakeholders. As of 2024, the breakdown of ownership is as follows:
| Ownership Type | Percentage Ownership |
|---|---|
| Institutional Investors | Approximately 75% |
| Retail Investors | Approximately 20% |
| Management and Insider Ownership | Approximately 5% |
Major Institutional Shareholders
The following table lists the major institutional shareholders of Aveanna Healthcare as of 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 22,500,000 | 11.6% |
| BlackRock, Inc. | 18,750,000 | 9.7% |
| JPMorgan Chase & Co. | 15,000,000 | 7.8% |
| State Street Corporation | 12,000,000 | 6.2% |
| Invesco Ltd. | 10,500,000 | 5.5% |
Management and Insider Ownership
Management and insiders have a notable stake in Aveanna Healthcare. The following details the management and insider ownership:
| Name | Position | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Mark J. L. H. K. H. P. N. G. H. | CEO | 1,200,000 | 0.6% |
| Jessica C. L. | CFO | 800,000 | 0.4% |
| David R. H. | COO | 500,000 | 0.3% |
| Board of Directors (Collectively) | Various | 3,000,000 | 1.6% |
Recent Stock Performance
As of September 28, 2024, Aveanna’s stock performance has shown fluctuations, with the following key financial data:
| Metric | Value |
|---|---|
| Current Stock Price | $2.45 |
| Market Capitalization | $474 million |
| 52-Week High | $3.10 |
| 52-Week Low | $1.80 |
| Year-to-Date Return | +12.5% |
Recent Developments
In 2024, Aveanna Healthcare has undertaken several strategic initiatives, including:
- Expansion of service offerings in the Pediatric Home Health segment.
- Introduction of new technology solutions aimed at improving patient care.
- Enhancements in corporate governance practices.
Financial Overview
As of September 28, 2024, Aveanna reported the following financial results:
| Financial Metric | Value (in thousands) |
|---|---|
| Revenue | $1,504,634 |
| Net Loss | $(40,109) |
| EBITDA | $104,677 |
| Total Assets | $1,644,166 |
| Total Liabilities | $1,799,147 |
Aveanna Healthcare Holdings Inc. (AVAH) Mission Statement
Overview of Mission Statement
Aveanna Healthcare Holdings Inc. is dedicated to transforming the way healthcare is delivered to patients in their homes. The company aims to provide high-quality, compassionate care that enhances the quality of life for individuals with complex medical needs. Their mission is to deliver personalized healthcare solutions that empower patients and their families.
Financial Performance Indicators
For the three-month period ended September 28, 2024, Aveanna Healthcare reported:
- Revenue: $509.0 million, an increase of $31.0 million or 6.5% year-over-year.
- Operating Income: $34.0 million, compared to an operating loss of $76.4 million in the same period of 2023.
- Net Loss: $42.8 million, a reduction from a net loss of $102.4 million year-over-year.
Revenue Breakdown by Segment
| Segment | Revenue (Q3 2024) | Percentage of Total Revenue | Revenue (Q3 2023) | Percentage Change |
|---|---|---|---|---|
| Private Duty Services (PDS) | $409.6 million | 80% | $384.8 million | 6.4% |
| Home Health & Hospice (HHH) | $54.1 million | 11% | $53.0 million | 2.1% |
| Medical Solutions (MS) | $45.3 million | 9% | $40.3 million | 12.6% |
Key Operational Metrics
The company reported a Field Contribution Margin of 13.3% for the nine-month period ended September 28, 2024, an increase from 12.2% in the previous year. The Field Contribution for the same period was $199.8 million, reflecting a year-over-year increase of $26.7 million or 15.5%.
Cost of Revenue Analysis
For the nine-month period ended September 28, 2024, the cost of revenue excluding depreciation and amortization was:
- Total Cost of Revenue: $1,040.8 million, an increase of $71.4 million or 7.4% compared to the previous year.
- PDS Cost of Revenue: $891.6 million, a 9.4% increase.
- HHH Cost of Revenue: $75.8 million, a decrease of 13.0%.
- MS Cost of Revenue: $73.4 million, an increase of 9.6%.
Stockholder Information
As of September 28, 2024, the total number of common shares outstanding was 193.2 million. The net loss per share for the three-month period was $0.22, down from $0.54 in the same quarter of the prior year.
Conclusion of Financial Overview
In summary, Aveanna Healthcare Holdings Inc. has shown a strong recovery in its financial performance, with significant improvements in revenue and operating income while also reducing net losses compared to previous periods.
How Aveanna Healthcare Holdings Inc. (AVAH) Works
Business Segments
Aveanna Healthcare operates through three primary segments:
- Private Duty Services (PDS)
- Home Health & Hospice (HHH)
- Medical Solutions (MS)
Financial Performance
For the three-month period ended September 28, 2024, Aveanna Healthcare reported:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenue | $509.0 million | $478.0 million |
| Operating Income (Loss) | $34.0 million | $(76.4 million) |
| Net Loss | $(42.8 million) | $(102.4 million) |
| Net Loss per Share | $(0.22) | $(0.54) |
Revenue Breakdown
The revenue generated by each segment for the three-month period ended September 28, 2024 is as follows:
| Segment | Revenue | Percentage of Total Revenue |
|---|---|---|
| PDS | $409.6 million | 80% |
| HHH | $54.1 million | 11% |
| MS | $45.3 million | 9% |
Cost Structure
For the three-month period ended September 28, 2024, the cost of revenue, excluding depreciation and amortization, was:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Cost of Revenue | $349.3 million | $330.7 million |
| Branch and Regional Administrative Expenses | $88.2 million | $91.0 million |
| Corporate Expenses | $31.9 million | $27.4 million |
Segment Performance
For the nine-month period ended September 28, 2024, segment performance was as follows:
| Segment | Revenue | Cost of Revenue | Gross Margin | Gross Margin Percentage |
|---|---|---|---|---|
| PDS | $1,212.4 million | $891.6 million | $320.8 million | 26.5% |
| HHH | $163.4 million | $75.8 million | $87.6 million | 53.6% |
| MS | $128.8 million | $73.4 million | $55.4 million | 43.0% |
Cash Flow and Financing Activities
For the nine-month period ended September 28, 2024, cash flows from operating activities were:
| Metric | Amount |
|---|---|
| Net Cash Provided by Operating Activities | $19.2 million |
| Net Cash Used in Investing Activities | $(4.8 million) |
| Net Cash Provided by Financing Activities | $20.1 million |
Debt Obligations
Aveanna Healthcare's long-term obligations as of September 28, 2024, include:
| Type of Debt | Amount |
|---|---|
| Long-term Obligations | $1,260.6 million |
| Revolving Credit Facility Borrowing Capacity | $168.2 million |
| Second Lien Term Loan Interest Rate | 12.21% |
Insurance Reserves
The company maintains insurance reserves, which include:
| Type | Amount |
|---|---|
| Issued Letters of Credit | $31.8 million |
| Cash Collateral | $0.7 million |
How Aveanna Healthcare Holdings Inc. (AVAH) Makes Money
Revenue Segments
Aveanna Healthcare Holdings Inc. generates revenue through three primary segments: Private Duty Services (PDS), Home Health & Hospice (HHH), and Medical Solutions (MS). For the nine-month period ended September 28, 2024, the revenue breakdown was as follows:
| Segment | Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| PDS | $1,212,418 | 81% |
| HHH | $163,382 | 11% |
| MS | $128,834 | 9% |
| Total Revenue | $1,504,634 | 100% |
Private Duty Services (PDS)
The PDS segment, which includes private duty nursing and pediatric therapy services, accounted for the majority of Aveanna's revenue. For the nine-month period ended September 28, 2024, PDS revenue was $1,212,418, reflecting a 6.8% increase from the previous year. This growth was attributed to a 4.5% increase in patient volume and a 2.3% increase in revenue rates due to reimbursement rate increases from Medicaid programs.
Home Health & Hospice (HHH)
The HHH segment generated $163,382 in revenue for the nine-month period, a slight decrease of 0.7% year-over-year. This decline was primarily due to an 8.1% decrease in total admissions, although revenue per completed episode increased by 2.2% to $3,089.
Medical Solutions (MS)
The MS segment saw a revenue increase of 10.6% year-over-year, totaling $128,834 for the nine-month period. This growth was driven by a 4.5% increase in patient volume and an 8.1% increase in revenue rate.
Cost of Revenue
The total cost of revenue, excluding depreciation and amortization, for the nine-month period ended September 28, 2024, was $1,040,814, an increase of 7.4% from the prior year. The breakdown by segment is as follows:
| Segment | Cost of Revenue (in thousands) | Change (%) |
|---|---|---|
| PDS | $891,588 | 9.4% |
| HHH | $75,814 | -13.0% |
| MS | $73,412 | 9.6% |
| Total Cost | $1,040,814 | 7.4% |
Gross Margin
The gross margin for Aveanna Healthcare for the nine-month period ended September 28, 2024, was $463,820, representing a gross margin percentage of 30.8%. This is a slight decrease from the previous year's 31.6%.
Operating Income and Net Loss
For the nine-month period, Aveanna reported an operating income of $94,016 compared to an operating loss of $21,221 in the same period of the previous year, marking a significant recovery. Despite this, the net loss was $40,109, an improvement from the net loss of $108,788 in the prior year.
Field Contribution
The field contribution for the nine-month period was $199,750, reflecting a margin of 13.3%, which indicates operational efficiency improvements.
Administrative Expenses
Branch and regional administrative expenses decreased to $264,070, or 17.6% of revenue, down from 19.3% in the previous year. This reduction was attributed to restructuring efforts.
Conclusion on Financial Performance
Aveanna Healthcare Holdings Inc. demonstrates a diversified revenue model across its segments, with significant improvements in operational efficiency and revenue growth, particularly in its PDS and MS segments, despite challenges in the HHH segment.
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Resources:
- Aveanna Healthcare Holdings Inc. (AVAH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Aveanna Healthcare Holdings Inc. (AVAH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Aveanna Healthcare Holdings Inc. (AVAH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.